Inheritance & Estate Taxes

The non-lineal descendants or ascendants, who upon death of the owner become the new owner of assets or property whether with or without a will or trust. The following table lists taxable and non-taxable legatees:

• Taxable Legatees
• Brother/Sister
• Aunt/Uncle
• Niece/Nephew/Cousin
• Mother-in-Law/Father-in-Law
• Daughter-In-Law/Son-in-Law (if divorced or remarried)
• Divorced Wife/Divorced Husband
• Non-Blood Relative
• Friends/Neighbors
• Anyone Not Listed in the Non-Taxable Column
• Non-Taxable Legatees
• Mother/Father
• Son/Daughter
• Stepson/Stepdaughter (current marriage)
• Legally Adopted Son/Legally Adopted Daughter (adopted before reaching the age of majority)
• Husband/Wife
• Common Law Spouse (decreed under RSA 457:39)
• Grandmother/Grandfather
• Grandson/Granddaughter
• Step-grandson/Step-granddaughter (current marriage)
• Step-great-grandson/Step-great-granddaughter (current marriage)
• Daughter-in-Law/Son-in-Law (current marriage)
• Care of cemetery in NH
• City or Town for public, municipal purposes
• Public Charities (IRS 501(c)(3))
• Child living in homestead for 10 consecutive years prior to his/her 15th birthday

Refer to RSA 86:6 for further clarification.

The executor or administrator must file a Legacy and Succession Tax return for the estate of a decedent if a tax liability occurs. A tax liability occurs when a bequest, joint transfer, trust, transfer within two years of death or the rest and residue is granted to a taxable legatee. You are only required to file a Form DP-145 tax return if there is a taxable legatee(s).

The Legacy and Succession Tax, NH Estate Tax, and Non-Resident Personal Property Tax returns are all due nine months from the date of death.

You may call the Departments Call Center at (603) 230-5920 or write to the NH DRA, Estate & Legacy, PO Box 637, Concord, NH 03302-0637 for additional questions.

To obtain an extension of time to file a Legacy and Succession tax return or NH Personal Property tax return, the extension request must be filed with the Department on or before the original due date of the return and include 100% of the tax due. The extension is to file the return only, not for an extension to pay the tax. The NH Estate tax is paid on an estimated form and a copy of the federal approved extension is attached to the NH Estate tax return when filed.

Yes, if the survivor is a taxable legatee pursuant to the who must file chart under the "who pays it" section.

A tax imposed upon the transfer of assets of every estate which is subject to an estate tax under the provisions of the United States Internal Revenue Code of 1986.

The executor or administrator must file a NH 706 Estate Tax Return if the resident decedent has a total gross estate that exceeds certain amounts as follows:

Calendar Year Gross Amount Exceeds

2000 & 2001 $675,000
2002 - 2004 $1,000,000

Note: For deaths occurring on or after Jan. 1, 2005, a NH-706 Estate Tax Return is not required to be filed due to the federal repeal of the estate death tax credit.

IRC Section: 2035 Effective 08/05/97 RSA 87:1

Non-residents who own real estate and/or tangible personal property in NH must also file a form NH-706 and pay the tax (see next section).

The executor or administrator of any non-resident decedent whose death occurred prior to January 1, 2003 owning tangible personal property in New Hampshire must file a return. A non-resident decedent is someone who did not claim New Hampshire as their legal residence. Tangible personal property is personal property which has physical substance such as furniture, boats, cars etc. Stocks or bank accounts are not tangible personal property.

Any transfer to a taxable person that occurs within two years prior to the decedent's date of death is taxable.

You should contact the Probate Court in the County where the decedent resided or visit the Probate Court's Web site at www.courts.state.nh.us/probate/.